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1 AGREEMENT BETWEEN THE TAIPEI REPRESENTATIVE OFFICE IN BELGIUMAND THE BELGIAN OFFICE, TAIPEI FOR THE AVOIDANCE OF DOUBLE TAXA-TION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXESON INCOME DESIRING to conclude an Agreement for the avoidance of doubletaxation and the prevention of fiscal evasion with respect totaxes on income for the purpose of further friendship, cooperat-ion and investment, Have agreed as follows: CHAPTER I. - SCOPE OF THE AGREEMENT Article 1 Persons covered This Agreement shall apply to persons who are residents in oneor both of the territories. Article 2 Taxes covered 1.This Agreement shall apply to taxes on income imposed in eith-er of the territories, irrespective of the manner in which th-ey are levied. 2.There shall be regarded as taxes on income all taxes imposedon total income, or on elements of income, including taxes ongains from the alienation of movable or immovable property,taxes on the total amounts of wages or salaries paid by enter-prises, as well as taxes on capital appreciation. 3.The existing taxes to which the Agreement shall apply are inparticular: a) in the territory in which the taxation law administered bythe Taxation Agency, Ministry of Finance, Taipei or fiscalauthorities of political subdivisions, is applied : 1°the profit -seeking enterprise income tax;and 2°the individual consolidated income tax, including the surcharges levied thereon; b) in the territory in which the taxation law administered bythe Belgian Federal Public Service Finance is applied : 1°the individual income tax; 2°the corporate income tax; 3°the income tax on legal entities; 4°the income tax on non-residents; and 5°the supplementary crisis contribution, including the prepayments and the surcharges on these taxesand prepayments. 4.The Agreement shall also apply to any identical or substantia-lly similar taxes that are imposed after the date of signatureof the Agreement in addition to, or in place of, the existingtaxes.The competent authorities of the territories shall no-tify each other of any significant changes that have been madein the taxation laws of the respective territories. CHAPTER II. - DEFINITIONS Article 3 General definitions 1.For the purposes of this Agreement, unless the context otherw-ise requires : a) the term "territory" means the territory referred to in pa-ragraph 3 a) or 3 b) of Article 2, as the case may be; b) the term "person" includes an individual, a company and anyother body of persons; c) the term "company" means any body corporate or any entitythat is treated as a body corporate for tax purposes in theterritory ofwhich it is a resident; d) the terms “enterprise of a territory” and “enterprise ofthe other territory” mean respectively an enterprise carr-ied on by a resident of a territory and an enterprise carr-ied on by a resident of the other territory; e) the term "international traffic" means any transport by aship or aircraft operated by an enterprise that has its pl-ace of effective management in a territory, except when theship or aircraft is operated solely between places in the other territory; f) the term "competent authority" means : 1°in the case of the territory in which the taxation law administered by the Taxation Agency, Ministry of Finance , Taipei is applied, the Director General of the Taxati- on Agency or his authorised representative, and 2°in the case of the territory in which the taxation law administered by the Belgian Federal Public Service Fina- nce is applied, the Minister of Finance or his authoris- ed representative. 2.As regards the application of the Agreement at any time in aterritory, any term not defined therein shall, unless the con-text otherwise requires, have the meaning that it has at thattime under the law in force in that territory for the purposesof the taxes to which the Agreement applies, any meaning underthe applicable tax laws in force in that territory prevailingover a meaning given to the term under other laws in force inthat territory. Article 4 Resident 1.For the purposes of this Agreement, the terms " a resident ofa territory" means any person who, under the laws in force inthat territory, is liable to tax therein by reason of his dom-icile, residence, place of incorporation, place of managementor any other criterion of a similar nature. 2.A person is not a resident of a territory for the purposes ofthis Agreement if that person is liable to tax in that territ-ory in respect only of income from sources in that territory,provided that this paragraph shall not apply to individualswho are residents of the territory referred to in paragraph 3a) of Article 2, as long as resident individuals are taxed on-ly in respect of income from sources in that territory. 3.Where by reason of the provisions of paragraph 1 an individualis a resident of both territories, then his status shall bedetermined as follows: a) he shall be deemed to be a resident only of the territoryin which he has a permanent home available to him; if he has a permanent home available to him in both territories,he shall be deemed to be a resident only of the territory with which his personal and economic relations are closer (centre of vital interests); b) if the territory in which he has his centre of vital inter-ests cannot be determined, or if he has not a permanent ho-me available to him in either territory, he shall be deemedto be a resident only of the territory in which he has an habitual abode; c) if he has an habitual abode in both territories or in neit-her of them, the competent authorities of the territories shall settle the question by mutual agreement. 4.Where by reason of the provisions of paragraph 1 a person oth-er than an individual is a resident of both territories, thenit shall be deemed to be a resident only of the territory inwhich its place of effective management is situated. Article 5 Permanent establishment 1.For the purposes of this Agreement, the term "permanent estab-lishment" means a fixed place of business through which thebusiness of an enterprise is wholly or partly carried on. 2.The term "permanent establishment" includes especially :a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop, and f) a mine, an oil or gas well, a quarry or any other place ofextraction of natural resources. 3.A building site or construction, assembly or installation pro-ject constitutes a permanent establishment only if it lastsmore than six months. 4.An enterprise of a territory shall be deemed to have a perman-ent establishment in the other territory only if: a) it carries on supervisory activities in that other territo-ry for more than six months in connection with a building site or construction, assembly or installationproject wh-ich is being undertaken in that other territory; b) it furnishes services, including consultancy services, thr-ough employees or other personnel or persons engaged by theenterprise for such purpose, but only where activities of that nature continue within that other territory, for the same or a connected project, for a period or periods aggre-gating more than six months within any twelve month period.5.Notwithstanding the preceding provisions of this Article, theterm "permanent establishment" shall be deemed not to include:a) the use of facilities solely for the purpose of storage,display or delivery of goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belongi-ng to the enterprise solely for the purpose of storage, di-splayor delivery; c) the maintenance of a stock of goods or merchandise belongi-ng to the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for thepurpose of purchasing goods or merchandise or of collectinginformation, for the enterprise; e) the maintenance of a fixed place of business solely for thepurpose of carrying on, for the enterprise, any other acti-vity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for anycombination of activities mentioned in subparagraphs a) toe), provided that the overall activity of the fixed place of business resulting from this combination is of a prepar-atory or auxiliary character. 6.Notwithstanding the provisions of paragraphs 1 and 2, where aperson -other than an agent of an independent status to whomparagraph 7 applies- is acting on behalf of an enterprise andhas, and habitually exercises, in a territory an authority toconclude contracts in the name of the enterprise, that enterp-rise shall be deemed to have a permanent establishment in thatterritory in respect of any activities which that person unde-rtakes for the enterprise, unless the activities of such pers-on are limited to those mentioned in paragraph 5 d) which, ifexercised through a fixed place of business, would not makethis fixed place of business a permanent establishment underthe provisions of that paragraph. 7.An enterprise shall not be deemed to have a permanent establi-shment in a territory merely because it carries on business inthat territory through a broker, general commission agent orany other agent of an independent status, provided that suchpersons are acting in the ordinary course of their business.8.The fact that a company which is a resident of a territory co-ntrols or is controlled by a company which is a resident ofthe other territory, or which carries on business in that oth-er territory (whether through a permanent establishment or ot-herwise), shall not of itself constitute either company a per-manent establishment of the other. CHAPTER III.- TAXATION OF INCOME Article 6 Income from immovable property 1.Income derived by a resident of a territory from immovable pr-operty (including income from agriculture or forestry) situat-ed in the other territory may be taxed in that other territory. 2.The term "immovable property" shall have the meaning which ithas under the law in force in the territory in which the prop-erty in question is situated.The term shall in any case inc-lude property accessory to immovable property, livestock andequipment used in agriculture and forestry, rights to whichthe provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fi-xed payments as consideration for the working of, or the rightto work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovableproperty. 3.The provisions of paragraph 1 shall apply to income derivedfrom the direct use, letting, or use in any other form of imm-ovable property. 4.The provisions of paragraphs 1 and 3 shall also apply to theincome from immovable property of an enterprise and to incomefrom immovable property used for the performance of independe-nt personal services. Article 7 Business profits 1.The profits of an enterprise of a territory shall be taxableonly in that territory unless the enterprise carries on busin-ess in the other territory through a permanent establishmentsituated therein.If the enterprise carries on business asaforesaid, the profits of the enterprise may be taxed in theother territory but only so much of them as is attributable tothat permanent establishment. 2.Subject to the provisions of paragraph 3, where an enterpriseof a territory carries on business in the other territory thr-ough a permanent establishment situated therein, there shallin each territory be attributed to that permanent establishme-nt the profits which it might be expected to make if it were adistinct and separate enterprise engaged in the same or simil-ar activities under the same or similar conditions and dealingwholly independently. 3.In determining the profits of a permanent establishment, thereshall be allowed as deductions expenses which are incurred forthe purposes of the permanent establishment, including execut-ive and general administrative expenses so incurred, whetherin the territory in which the permanent establishment is situ-ated or elsewhere. 4.Insofar as it has been customary in a territory to determinethe profits to be attributed to a permanent establishment onthe basis of an apportionment of the total profits of the ent-erprise to its various parts, nothing in paragraph 2 shall pr-eclude that territory from determining the profits to be taxedby such an apportionment as may be customary; the method ofapportionment adopted shall, however, be such that the resultshall be in accordance with the principles contained in thisArticle. 5.No profits shall be attributed to a permanent establishment byreason of the mere purchase by that permanent establishment ofgoods or merchandise for the enterprise. 6.For the purposes of the preceding paragraphs, the profits tobe attributed to the permanent establishment shall be determi-ned by the same method year by year unless there is good andsufficient reason to the contrary. 7.Where profits include items of income which are dealt with se-parately in other Articles of this Agreement, then the provis-ions of those Articles shall not be affected by the provisionsof this Article. Article 8 Shipping and air transport 1.Profits from the operation of ships or aircraft in internatio-nal traffic shall be taxable only in the territory in whichthe place of effective management of the enterprise is situat-ed. 2.For the purpose of this Article, profits from the operation ininternational traffic of ships or aircraft shall include inparticular: a) profits derived from the lease by the enterprise of shipsor aircraft on charter fully equipped, manned and supplied,used in international traffic; b) profits derived from the lease by the enterprise on a bareboat charter basis of ships or aircraft used in internatio-nal traffic, when such lease is an occasional source of in-come for such enterprise; c) profits derived from the lease of containers and relatedequipment by the enterprise, when such lease is supplement-ary or incidental to its operations in international traff-ic. 3.If the place of effective management of a shipping enterpriseis aboard a ship, then it shall be deemed to be situated inthe territory in which the home harbour of the ship is situat-ed, or, if there is no such home harbour, in the territory ofwhich the operator of the ship is a resident. 4.The provisions of paragraph 1 shall also apply to profits fromthe participation in a pool, a joint business or an internati-onal operating agency, but only to so much of the profits soderived as is attributable to the participant in proportion toits share in the joint operation. Article 9 Associated enterprises 1.Where a) an enterprise of a territory participates directly or indi-rectly in the management, control or capital of an enterpr-ise of the other territory, or b) the same persons participate directly or indirectly in themanagement, control or capital of an enterprise of a terri-tory and an enterprise of the other territory, and in either case conditions are made or imposed between thetwo enterprises in their commercial or financial relations wh-ich differ from those which would be made between independententerprises, then any profits which would, but for those cond-itions, have accrued to one of the enterprises, but, by reasonof those conditions, have not so accrued, may be included inthe profits of that enterprise and taxed accordingly. 2.Where a territory includes in the profits of an enterprise ofthat territory - and taxes accordingly - profits on which anenterprise of the other territory has been charged to tax inthat other territory and the profits so included are profitswhich would have accrued to the enterprise of the first-menti-oned territory if the conditions made between the two enterpr-ises had been those which would have been made between indepe-ndent enterprises, then that other territory shall make suchan adjustment as it considers appropriate to the amount of thetax charged therein on those profits. In determining such adj-ustment, due regard shall be had to the other provisions ofthis Agreement and the competent authorities of the territori-es shall if necessary consult each other. Article 10 Dividends 1.Dividends paid by a company which is a resident of a territoryto a resident of the other territory may be taxed in that oth-er territory. 2.However, such dividends may also be taxed in the territory ofwhich the company paying the dividends is a resident and acco-rding to the laws in force in that territory, but if the bene-ficial owner of the dividends is a resident of the other terr-itory, the tax so charged shall not exceed 10 per cent of thegross amount of the dividends. This paragraph shall not affect the taxation of the company inrespect of the profits out of which the dividends are paid.3.The term "dividends" as used in this Article means income fromshares, "jouissance" shares or "jouissance" rights, mining sh-ares, founders' shares or other rights, not being debt-claims,participating in profits, as well as income -even paid in theform of interest- which is subjected to the same taxation tre-atment as income from shares by the tax legislation in forcein the territory of which the paying company is a resident.4.The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the dividends, being a resident of a terr-itory, carries on business in the other territory of which thecompany paying the dividends is a resident through a permanentestablishment situated therein, or performs in that other ter-ritory independent personal services from a fixed base situat-ed therein, and the holding in respect of which the dividendsare paid is effectively connected with such permanent establi-shment or fixed base.In such case the provisions of Article7 or Article 14, as the case may be, shall apply. 5.Where a company which is a resident of a territory derives pr-ofits or income from the other territory, that other territorymay not impose any tax on the dividends paid by the company,except insofar as such dividends are paid to a resident of th-at other territory or insofar as the holding in respect of wh-ich the dividends are paid is effectively connected with a pe-rmanent establishment or a fixed base situated in that otherterritory, nor subject the company's undistributed profits toa tax on the company's undistributed profits, even if the div-idends paid or the undistributed profits consist wholly or pa-rtly of profits or income arising in such other territory.Article 11 Interest 1.Interest arising in a territory and paid to a resident of theother territory may be taxed in that other territory. 2.However, such interest may also be taxed in the territory inwhich it arises and according to the laws in force in that te-rritory, but if the beneficial owner of the interest is a res-ident of the other territory, the tax so charged shall not ex-ceed 10 per cent of the gross amount of the interest. 3.Notwithstanding the provisions of paragraph 2, interest shallbe exempted from tax in the territory in which it arises if itis: a) interest paid in respect of a loan granted, guaranteed orinsured or a credit extended, guaranteed or insured by an approved instrumentality of the other territory which aimsat promoting export, or under a scheme organised by an aut-hority administrating a territory or a subdivision thereofor by a local authority in order to promote the export; b) interest paid on loans made between banks; c) interest paid to a public entity of a territory or a centr-al bank of that territory. 4.The term "interest" as used in this Article means income fromdebt-claims of every kind, whether or not secured by mortgageand whether or not carrying a right to participate in the deb-tor's profits, and in particular, income from government secu-rities and income from bonds or debentures, including premiumsand prizes attaching to such securities, bonds or debentures.However, the term "interest" shall not include for the purpo-se of this Article penalty charges for late payment, intereston commercial debt-claims resulting from deferred paymentsfor goods, merchandise or services supplied by an enterpriseor interest regarded as dividends under paragraph 3 of Artic-le 10. 5.The provisions of paragraphs 1, 2 and 3 shall not apply if thebeneficial owner of the interest, being a resident of a terri-tory, carries on business in the other territory in which theinterest arises through a permanent establishment situated th-erein, or performs in that other territory independent person-al services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectivelyconnected with such permanent establishment or fixed base. Insuch case the provisions of Article 7 or Article 14, as thecase may be, shall apply. 6.Interest shall be deemed to arise in a territory when the pay-er is a resident of that territory. Where, however, the personpaying the interest, whether he is a resident of a territoryor not, has in a territory a permanent establishment or a fix-ed base in connection with which the indebtedness on which theinterest is paid was incurred, and such interest is borne bysuch permanent establishment or fixed base, then such interestshall be deemed to arise in the territory in which the perman-ent establishment or fixed base is situated. 7.Where, by reason of a special relationship between the payerand the beneficial owner or between both of them and some oth-er person, the amount of the interest, having regard to thedebt-claim for which it is paid, exceeds the amount which wou-ld have been agreed upon by the payer and the beneficial ownerin the absence of such relationship, the provisions of thisArticle shall apply only to the last-mentioned amount. In suchcase, the excess part of the payments shall remain taxable ac-cording to the laws in force in each territory, due regard be-ing had to the other provisions of this Agreement. Article 12 Royalties 1.Royalties arising in a territory and paid to a resident of theother territory may be taxed in that other territory. 2.However, such royalties may also be taxed in the territory inwhich they arise and according to the laws in force in thatterritory, but if the beneficial owner of the royalties is aresident of the other territory, the tax so charged shall notexceed 10 percent of the gross amount of the royalties. 3.The term "royalties" as used in this Article means payments ofany kind received as a consideration for the use of, or theright to use, any copyright of literary, artistic or scientif-ic work including cinematograph films and films or tapes fortelevision or radio broadcasting, any patent, trade mark, des-ign or model, plan, secret formula or process, or for informa-tion concerning industrial, commercial or scientific experien-ce. 4.The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the royalties, being a resident of a terr-itory, carries on business in the other territory in which theroyalties arise through a permanent establishment situated th-erein, or performs in that other territory independent person-al services from a fixed base situated therein, and the rightor property in respect of which the royalties are paid is eff-ectively connected with such permanent establishment or fixedbase.In such case the provisions of Article 7 or Article 14,as the case may be, shall apply. 5.Royalties shall be deemed to arise in a territory when the pa-yer is a resident ofthat territory.Where, however, the pe-rson paying the royalties, whether he is a resident of a terr-itory or not, has in a territory a permanent establishment ora fixed base in connection with which the liability to pay theroyalties was incurred, and such royalties are borne by suchpermanent establishment or fixed base, then such royalties sh-all be deemed to arise in the territory in which the permanentestablishment or fixed base is situated. 6.Where, by reason of a special relationship between the payerand the beneficial owner or between both of them and some oth-er person, the amount of the royalties, having regard to theuse, right or information for which they are paid, exceeds theamount which would have been agreed upon by the payer and thebeneficial owner in the absence of such relationship, the pro-visions of this Article shall apply only to the last-mentionedamount.In such case, the excess part of the payments shallremain taxable according to the laws in force in each territo-ry, due regard being had to the other provisions of this Agre-ement. Article 13 Capital gains 1.Gains derived by a resident of a territory from the alienationof immovable property referred to in Article 6 and situated inthe other territory may be taxed in that other territory. 2.Gains from the alienation of movable property forming part ofthe business property of a permanent establishment which anenterprise of a territory has in the other territory or of mo-vable property pertaining to a fixed base available to a resi-dent of a territory in the other territory for the purpose ofperforming independent personal services, including such gainsfrom the alienation of such a permanent establishment (aloneor with the whole enterprise) or of such fixed base, may betaxed in that other territory. 3.Gains from the alienation of ships or aircraft operated in in-ternational traffic or movable property pertaining to the ope-ration of such ships or aircraft, shall be taxable only in theterritory in which the place of effective management of theenterprise is situated. 4.Gains from the alienation of any property, other than that re-ferred to in paragraphs 1, 2 and 3, shall be taxable only inthe territory of which the alienator is a resident. Article 14 Independent personal services 1.Income derived by a resident of a territory in respect of pro-fessional services or other activities of an independent char-acter shall be taxable only in that territory except in thefollowing circumstances, when such income may also be taxed inthe other territory: a) if he has a fixed base regularly available to him in theother territory for the purpose of performing his activiti-es; in that case, only so much ofthe income as is attrib-utable to that fixed base may be taxed in that other terri-tory; or b) if he is present in the other territory for a period or pe-riods amounting to or exceeding in the aggregate 183 days in the fiscal year concerned; in that case, only so much income as is derived from his activities performed in thatother territory may be taxed in that other territory. 2.The term “professional services” includes especially indepe-ndent scientific, literary, artistic, educational or teachingactivities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.Article 15 Dependent personal services 1.Subject to the provisions of Articles 16, 18, and 19, salaries, wages and other similar remuneration derived by a residentof a territory in respect of an employment shall be taxableonly in that territory unless the employment is exercised inthe other territory.If the employment is so exercised, suchremuneration as is derived therefrom may be taxed in that oth-er territory. 2.Notwithstanding the provisions of paragraph 1, remunerationderived by a resident of a territory in respect of an employm-ent exercised in the other territory shall be taxable only inthe first-mentioned territory if : a) the recipient is present in the other territory for a peri-od or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxableperiod concerned, and b) the remuneration is paid by, or on behalf of, an employerwho is not a resident of the other territory, and c) the remuneration is not borne by a permanent establishmentor a fixed base which the employer has in the other territ-ory. 3.Notwithstanding the preceding provisions of this Article, rem-uneration derived in respect of an employment exercised aboarda ship or aircraft operated in international traffic, may betaxed in the territory in which the place of effective manage-ment of the enterprise is situated. Article 16 Directors’ fees 1.Directors' fees and other similar payments derived by a resid-ent of a territory in his capacity as a member of the board ofdirectors or a similar organ of a company which is a residentof the other territory may be taxed in that other territory.The preceding provision shall also apply to payments derivedin respect of the discharge of functions which, under the lawsin force in the territory of which the company isa resident,are regarded as functions of a similar nature as those exerci-sed by a person referred to in the said provision. 2.Remuneration derived by a person referred to in paragraph 1from a company which is a resident of a territory in respectof the discharge of day-to-day functions of a managerial ortechnical, commercial or financial nature and remuneration re-ceived by a resident of a territory in respect of his day-to-day activity as a partner of a company, other than a companywith share capital, which isa resident of a territory, maybe taxed in accordance with the provisions of Article 15, asif such remuneration were remuneration derived by an employeein respect of an employment and as if references to the "empl-oyer" were references to the company. Article 17 Artistes and sportsmen 1.Notwithstanding the provisions of Articles 14 and 15, incomederived by a resident of a territory as an entertainer, suchas a theatre, motion picture, radio or television artiste, ora musician, or as a sportsman, from his personal activities assuch exercised in the other territory, may be taxed in thatother territory. 2.Where income in respect of personal activities exercised by anentertainer or a sportsman in his capacity as such accrues notto the entertainer or sportsman himself but to another person,that income may, notwithstanding the provisions of Articles 7,14 and 15, be taxed in the territory in which the activitiesof the entertainer or sportsman are exercised. Article 18 Pensions and annuities 1.Pensions and other similar remuneration paid to a resident ofa territory in consideration of past employment, may be taxedin the territory in which they arise.This provision shallalso apply to annuities and to pensions and other similar rem-uneration paid by an entity of a territory under social secur-ity legislation in force in that territory or under a publicscheme organised by that territory in order to supplement thebenefits of that social security legislation. 2.The term “annuity” means a stated sum payable periodicallyat stated times during life or during a specified or ascertai-nable period of time under an obligation to make the paymentsin return for adequate and full consideration in money or mon-ey’s worth. Article 19 Government service 1.Salaries, wages and other similar remuneration, other than apension, paid by an authority administrating a territory or asubdivision thereof or by a local authority of that territoryto an individual in respect of services rendered to that auth-ority in the discharge of public or administrative functionsshall be taxable only in that territory. However, such salaries, wages and other similar remunerationshall be taxable only in the other territory if the servicesare rendered in that territory and the individual is a reside-nt of that territory who : 1°is a citizen or national of that territory; or 2°did not become a resident of that territory solely for thepurpose of rendering the services. 2.The provisions of Articles 15, 16 and 17 shall apply to salar-ies, wages and other similar remuneration, in respect of serv-ices rendered in connection with a business carried on by anauthority referred to in paragraph 1. Article 20 Students Payments which a student or business apprentice who is or wasimmediately before visiting a territory a resident of the otherterritory and who is present in the first-mentioned territorysolely for the purpose of his education or training receives forthe purpose of his maintenance, education or training shall notbe taxed in that territory, provided that such payments arisefrom sources outside that territory. Article 21 Other income 1.Items of income of a resident of a territory, wherever arising, not dealt with in the foregoing Articles of this Agreementshall be taxable only in that territory. 2.The provisions of paragraph 1 shall not apply to income, otherthan income from immovable property as defined in paragraph 2of Article 6, if the recipient of such income, being a reside-nt of a territory, carries on business in the other territorythrough a permanent establishment situated therein, or perfor-ms in that other territory independent personal services froma fixed base situated therein, and the right or property inrespect of which the income is paid is effectively connectedwith such permanent establishment or fixed base. In such casethe provisions of Article 7 or Article 14, as the case may be, shall apply. 3.Notwithstanding the provisions of paragraphs 1 and 2, items ofincome of a resident of a territory not dealt with in the for-egoing Articles of the Agreement and arising in the other ter-ritory may also be taxed in that other territory. CHAPTER IV.- METHODS FOR ELIMINATION OF DOUBLE TAXATIONArticle 22 Elimination of double taxation 1.In the territory referred to in paragraph 3 a) of Article 2,double taxation shall be avoided as follows : Where a resident of the territory referred to in paragraph 3 a) of Article 2 derives income from the other territory, theamount of tax on that income paid in that other territory (butexcluding, in the case of a dividend, tax paid in respect ofthe profits out of which the dividend is paid) and in accorda-nce with the provisions of this Agreement, shall be creditedagainst the tax levied in the first-mentioned territory impos-ed on that resident. The amount of credit, however, shall notexceed the amount of the tax in the first-mentioned territoryon that income computed in accordance with its taxation lawsand regulations. 2.In the territory referred to in paragraph 3 b) of Article 2,double taxation shall be avoided as follows : a) Where a resident of the territory referred to in paragraph3 b) of Article 2 derives elements of income, not being di-vidends, interest or royalties, which may be taxed in the other territory in accordance with the provisions of the Agreement, and which are taxed there, such elements of inc-ome shall be exempt from tax but, in calculating the amountof tax on the remaining income of that resident, the rate of tax which would have been applicable if such income hadnot been exempted shall apply. b) Dividends derived by a company which is a resident of theterritory referred to in paragraph 3 b) of Article 2 from acompany which is a resident of the other territory shall beexempt from the corporate income tax in the first-mentionedterritory under the conditions and within the limits provi-ded for in the laws in force in that first-mentioned terri-tory. c) Subject to the provisions of the law in force in the terri-tory referred to in paragraph 3 b) of Article 2 regarding the deduction of taxes paid abroad, where a resident of th-at territory derives items of income which are included inhis aggregate income taxable in that territory and which are interest or royalties, the tax levied in the other ter-ritory on that income shall be allowed as a credit againstthe tax of the first-mentioned territory relating to such income. d) Where, in accordance with the law in force in the territoryreferred to in paragraph 3 b) of Article 2, losses incurredby an enterprise carried on by a resident of that territorythrough a permanent establishment situated in the other te-rritory, have been effectively deducted from the profits ofthat enterprise for its taxation in the first-mentioned te-rritory, the exemption provided for in subparagraph a) sha-ll not apply in the first-mentioned territory to the profi-ts of other taxable periods attributable to that permanentestablishment to the extent that those profits have also been exempted from tax in the other territory by reason ofcompensation for the said losses. CHAPTER V.- SPECIAL PROVISIONS Article 23 Non-discrimination 1.Nationals of a territory shall not be subjected in the otherterritory to any taxation or any requirement connected therew-ith, which is other or more burdensome than the taxation andconnected requirements to whichnationals of that other terr-itory in the same circumstances, in particular with respect toresidence, are or may be subjected. This provision shall, not-withstanding the provisions of Article 1, also apply to perso-ns who are not residents of one or both of the territories.2.The taxation on a permanent establishment which an enterpriseof a territory has in the other territory shall not be lessfavourably levied in that other territory than the taxationlevied on enterprises of that other territory carrying on thesame activities.This provision shall not be construed as ob-liging a territory to grant to residents of the other territo-ry any personal allowances, reliefs and reductions for taxati-on purposes on account of civil status or family responsibili-ties which it grants to residents in its territory. 3.Except where the provisions of paragraph 1 of Article 9, para-graph 7 of Article 11, or paragraph 6 of Article 12, apply,interest, royalties and other disbursements paid by an enterp-rise of a territory to a resident of the other territory shall, for the purpose of determining the taxable profits of suchenterprise, be deductible under the same conditions as if theyhad been paid to a resident of the first-mentioned territory.4.Enterprises of a territory, the capital of which is wholly orpartly owned or controlled, directly or indirectly, by one ormore residents of the other territory, shall not be subjectedin the first-mentioned territory to any taxation or any requi-rement connected therewith which is other or more burdensomethan the taxation and connected requirements to which othersimilar enterprises of the first-mentioned territory are ormay be subjected. 5.The provisions of this Article shall apply to taxes which arethe subject of this Agreement. Article 24 Mutual agreement procedure 1.Where a person considers that the actions in one or both ofthe territories result or will result for him in taxation notin accordance with the provisions of this Agreement, he may,irrespective of the remedies provided by the domestic law inforce in those territories, present his case to the competentauthority of the territory of which he is a resident, or ifhis case comes under paragraph 1 of Article 23, to that of theterritory of which he is considered to be a national. The casemust be presented within three years from the first notificat-ion of the action resulting in taxation not in accordance withthe provisions of the Agreement. 2.The competent authority shall endeavour, if the objection app-ears to it to be justified and if it is not itself able to ar-rive at a satisfactory solution, to resolve the case by mutualagreement with the competent authority of the other territory,with a view to the avoidance of taxation which is not in acco-rdance with the Agreement. Any agreement reached shall be imp-lemented notwithstanding any time limits in the domestic lawin force in the territories. 3.The competent authorities of the territories shall endeavourto resolve by mutual agreement any difficulties or doubts ari-sing as to the interpretation or application of the Agreement.4.The competent authorities of the territories shall agree onadministrative measures necessary to carry out the provisionsof the Agreement and particularly on the proofs to be furnish-ed by residents of either territory in order to benefit in theother territory from the exemptions or reductions of tax prov-ided for in the Agreement. 5.The competent authorities of the territories shall communicatedirectly with each other for the application of the Agreement.Article 25 Exchange of information 1.The competent authorities of the territories shall exchangesuch information as is useful for carrying out the provisionsof this Agreement or of the domestic laws in force in the ter-ritories concerning taxes of every kind and description impos-ed on behalf of the territories, insofar as the taxation ther-eunder is not contrary to the Agreement. The exchange of info-rmation is not restricted by Articles 1 and 2. Any informationreceived by a competent authority of a territory shall be tre-ated as secret in the same manner as information obtained und-er the domestic laws in force in that territory and shall bedisclosed only to persons or authorities (including courts andadministrative bodies) concerned with the assessment or colle-ction of, the enforcement or prosecution in respect of, or thedetermination of appeals in relation to the taxes referred toin the first sentence.Such persons or authorities shall usethe information only for such purposes.They may disclose theinformation in public court proceedings or in judicial decisi-ons. 2.In no case shall the provisions of paragraph 1 be construed soas to impose on the competent authority of a territory the ob-ligation: a) to carry out administrative measures at variance with thelaws in force in and the administrative practice of that orthe other territory; b) to supply information which is not obtainable under the la-ws in force in either territory or in the normal course ofthe administration of either territory; c) to supply information which would disclose any trade, busi-ness, industrial, commercial or professional secret or tra-de process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 26 Aid in recovery 1.Each of the territories shall endeavor to collect, as if itwere its own tax, any tax referred to in Article 2, which hasbeen imposed by the other territory and the collection of whi-ch is necessary to ensure that any exemption or reduction oftax granted under this Agreement by that other territory shallnot be enjoyed by persons not entitled to such benefits. 2.The provisions of this Article shall in no case be construedso as to impose on the requested territory the obligation toapply any means of enforcement which are not authorized by thelaws in force in that or in the other territory or to take me-asures which would be contrary to public policy (ordre public). Article 27 Limitation on benefits Notwithstanding the provisions of any other Article of this Agr-eement, a resident of a territory shall not receive the benefitof any reduction in or exemption from tax provided for in theAgreement by the other territory if the main purpose or one ofthe main purposes of such resident or a person connected withsuch resident was to obtain the benefits of this Agreement.CHAPTER VI.- FINAL PROVISIONS Article 28 Entry into force 1.The Belgian Office, Taipei and the Taipei Representative Offi-ce in Belgium shall notify each other in writing about the co-mpletion of the procedures required for the entry into forceof this Agreement in their respective territories. The Agreem-ent shall enter into force from the date on which the later ofthese written notifications is received. 2.The provisions of the Agreement shall have effect : a) in respect of taxes due or withheld at source on income cr-edited or payable on or after January 1 of the year next following the year in which the Agreement enters into force; b) in respect of other taxes charged on income of taxable per-iods beginning on or after January 1 of the year next foll-owing the year in which the Agreement enters into force. Article 29 Termination This Agreement shall remain in force indefinitely, but the Belg-ian Office, Taipei and the Taipei Representative Office in Belg-ium may terminate the Agreement, by giving written notice of te-rmination not later than the 30th June of any calendar year fromthe fifth year following that in which the Agreement enters intoforce. In such event, the Agreement shall cease to have effect:a) in respect of taxes due or withheld at source on income cred-ited or payable on or after January 1 of the year next follo-wing the year in which the notice of termination is given;b) in respect of other taxes charged on income of taxable perio-ds beginning on or after January 1 of the year next followingthe year in which the notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorised there-to, have signed this Agreement. DONE in duplicate at Brussels, this 13th day of October 2004, inthe English language. FOR THE TAIPEIFOR THE BELGIAN OFFICE,REPRESENTATIVE OFFICE IN BELGIUM: TAIPEI: C. J. CHEN, Hugues MIGNOT, PROTOCOL At the moment of signing the Agreement between the Belgian Offi-ce, Taipei and the Taipei Representative Office in Belgium forthe avoidance of double taxation and the prevention of fiscalevasion with respect to taxes on income, the undersigned haveagreed upon the following provisions which shall form an integr-al part of the Agreement. 1.Ad Article 5, paragraph 4 and Article 7 : It is understood that where activities are deemed to be a per-manent establishment under paragraph 4 of Article 5, only pro-fits attributable to the activities performed through employe-es or other personnel or persons present in that other territ-ory may be taxed in that other territory. 2.Ad Article 11, paragraph 3: It is understood that the provision of subparagraph a) shallapply, a) in the case of the territory in which the taxation law isadministered by the Belgian Federal Public Service Finance:- to interest of a loan or a credit for which a financial support is granted after advice of the Committee for fin- ancial support to export (“Finexpo”); - to interest of a loan or a credit granted by the Associa-tion for the coordination of medium-term financing of Be- lgian export (“Creditexport”); - to interest of a loan or a credit insured by the NationalOffice of Del Credere;. b) in the case of the territory in which the taxation law isadministered by the Taxation Agency, Ministry of Finance, Taipei, to interest received by the instrumentalities whichaim at promoting export and are approved by that Agency. 3.Ad Article 15, paragraph 1 : It is understood that an employment is exercised in a territo-ry when the activity in respect of which the salaries, wagesand other remuneration are paid, is effectively carried on inthat territory, this means when the employee is physically pr-esent in that territory for carrying on this activity there.4.Ad Article 22, paragraph 2 a) : Elements of income received by a resident of the territory inwhich the taxation law administered by the Belgian Federal Pu-blic Service Finance is applied, shall not be deemed to be ta-xed in the other territory when such income is not included inthe basis on which tax is due in that other territory. Conseq-uently elements of income which are not taxable or are exempt-ed in virtue of the legislation in force in that other territ-ory, shall not be considered to be taxed. IN WITNESS WHEREOF the undersigned, being duly authorised there-to, have signed this Protocol. DONE in duplicate at Brussels, this 13th day of October 2004, inthe English language. FOR THE TAIPEIFOR THE BELGIAN OFFICE,REPRESENTATIVE OFFICE IN BELGIUM: TAIPEI: C. J. CHEN, Hugues MIGNOT,